Food self-reliance and food self-sufficiency : evaluating the policy options

Three types of food policies are delineated: (1) self-sufficiency - food needs are met entirely from domestic consumption; (2) trade-dependence - food, or the financing to buy it, is obtained from other countries; and (3) self-reliance - food needs are met from a deliberate combination of domestic production and imports, the idea being to benefit from trade while improving efficiency in the agricultural sector. The paper then presents a framework and tools for evaluating these alternative food strategies. Specifically, it suggests two complementary empirical approaches, one based on elasticities and the other on budget cost data, for measuring the effects of the price, macroeconomic, and investment policies which constitute each food strategy; develops a microcomputer-based policy choice model which can be used with either market or budget data; and tests the model using data on Indonesia"s rice, corn, and cassava agricultural systems. The paper thus integrates all three levels of applied economic analysis - conceptual reasoning (theory), methods of measuring (computer software), and empirical application (Indonesian case study). Annexes provide data sources and software documentation.